What is the monthly interest rate charged by Bojangles on overdue amounts or underpayments?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Comments |
|---|---|---|---|
| Interest | 1.5% per month compounded monthly or the maximum rate permitted by law, whichever is less | Payable upon demand. | Payable on any overdue amount or underpayment from the date such amount was due until paid. |
Source: Item 6 — OTHER FEES (FDD pages 21–24)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee has any overdue amounts or underpayments, Bojangles charges interest on those amounts. The interest rate is 1.5% per month, compounded monthly.
However, the FDD also states that the interest rate will be the maximum rate permitted by law if that rate is less than 1.5% per month. This means that Bojangles will charge whichever rate is lower: 1.5% per month or the highest rate legally allowed in the franchisee's jurisdiction.
The interest is payable on demand and accrues from the date the amount was originally due until it is fully paid. This could potentially increase the amount owed significantly over time, so franchisees must ensure timely payments to avoid incurring these interest charges.